Singapore Considers Stringent Regulations for Retail Crypto Investors
Singapore’s
Central Bank, the Monetary Authority of Singapore (MAS), is contemplating
imposing stringent regulations on retail crypto investors. "MAS regards
cryptocurrencies as unsuitable for use as money and as highly hazardous for
retail investors," said the Chief of the Central Bank.
New Regulations in the Offing for Retail Crypto Investors
At
the Green Shoots Seminar on Monday, Ravi Menon, the Managing Director of the
Monetary Authority of Singapore (MAS), spoke about cryptocurrency regulation.
He
outlined five key areas of risk in digital assets in the regulatory approach of
the central bank. They are combating money laundering and terrorist financing
risks; managing technology and cyber-related risks; safeguarding retail
investors; upholding the promise of stability in stablecoins, and mitigating
potential financial stability risks.
The Central Bank Chief noted:
"MAS
regards cryptocurrencies as unsuitable for use as money and as highly hazardous
for retail investors."
"Cryptocurrencies
lack the three fundamental qualities of money: medium of exchange, store of
value, and unit of account," he said.
Menon
explained that the new regulatory measures will make it more difficult for
retail investors to trade cryptocurrencies. "Adding frictions on retail
access to cryptocurrencies is an area we are contemplating," he revealed,
elaborating:
"These
may include customer suitability tests and restricting the use of leverage and
credit facilities for cryptocurrency trading." However, he clarified,
"But
banning retail access to cryptocurrencies is not likely to work."
"The
cryptocurrency world is borderless. With just a mobile phone, Singaporeans have
access to any number of crypto exchanges in the world and can buy or sell any
number of cryptocurrencies," he opined.
"MAS’
development strategy makes Singapore one of the most conducive and facilitative
jurisdictions for digital assets," Menon concluded. "At the same
time, MAS’ evolving regulatory approach makes Singapore one of the most
comprehensive in managing the risks of digital assets and among the strictest
in areas like discouraging retail investments in cryptocurrencies."
0 Comments